[Federal Register Volume 63, Number 183 (Tuesday, September 22, 1998)]
[Presidential Documents]
[Pages 50739-50741]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-25476]



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Part VII





The President





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Proclamation 7125--To Modify Certain Provisions of the Special Textile 
and Apparel Regime Implemented Under the North American Free Trade 
Agreement
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  Federal Register / Vol. 63, No. 183 / Tuesday, September 22, 1998 / 
Presidential Documents  

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 Title 3--
 The President

[[Page 50739]]

                Proclamation 7125 of September 18, 1998

                
To Modify Certain Provisions of the Special 
                Textile and Apparel Regime Implemented Under the North 
                American Free Trade Agreement

                By the President of the United States of America

                A Proclamation

                1. On December 17, 1992, the Governments of Canada, 
                Mexico, and the United States entered into the North 
                American Free Trade Agreement (``the NAFTA''). The 
                NAFTA was approved by the Congress in section 101(a) of 
                the North American Free Trade Agreement Implementation 
                Act (``the NAFTA Implementation Act'') (19 U.S.C. 
                3311(a)), and was implemented with respect to the 
                United States by Presidential Proclamation 6641 of 
                December 15, 1993.

                2. Section 201(b)(1)(A) of the NAFTA Implementation Act 
                (19 U.S.C. 3331(b)(1)(A)) authorizes the President to 
                proclaim such modifications or continuation of any duty 
                as the President determines to be necessary or 
                appropriate to maintain the general level of reciprocal 
                and mutually advantageous concessions with respect to 
                Canada or Mexico provided for by the NAFTA, subject to 
                the consultation and layover requirements of section 
                103(a) of the NAFTA Implementation Act (19 U.S.C. 
                3313(a)). Among the provisions previously proclaimed to 
                implement the NAFTA schedule of concessions is heading 
                9802.00.90 of the Harmonized Tariff Schedule of the 
                United States (``HTS''), which affords duty-free entry 
                into the United States of certain textile and apparel 
                goods assembled in Mexico, in which all fabric 
                components were wholly formed and cut in the United 
                States and then exported to Mexico ready for assembly 
                and there assembled and returned to the U.S. customs 
                territory.

                3. In order to maintain the general level of reciprocal 
                and mutually advantageous concessions under the NAFTA, 
                I have determined that new provisions should be added 
                to chapter 99 of the HTS to provide that specified 
                apparel articles, which are assembled in Mexico using 
                interlining fabrics that are cut but not formed in the 
                United States, and which otherwise meet the conditions 
                set forth in HTS heading 9802.00.90, may enter the 
                United States free of duty on a temporary basis because 
                the necessary interlining fabrics for such apparel are 
                no longer formed in the United States. The consultation 
                and layover requirements provided for in section 103(a) 
                of the NAFTA Implementation Act have been observed.

                4. Section 604 of the Trade Act of 1974, as amended (19 
                U.S.C. 2483)(``Trade Act''), authorizes the President 
                to embody in the HTS the substance of the relevant 
                provisions of that Act, and of other Acts affecting 
                import treatment and actions thereunder, including the 
                removal, modification, continuance, or imposition of 
                any rate of duty or other import restriction.

                NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the 
                United States of America, acting under the authority 
                vested in me by the Constitution and the laws of the 
                United States, including, but not limited to, sections 
                103(a) and 201(b) of the NAFTA Implementation Act, 
                section 604 of the Trade Act, and section 301 of title 
                3, United States Code, do proclaim that:

[[Page 50740]]

                    (1) Subchapter VI of chapter 99 of the HTS is 
                modified as provided in the Annex to this proclamation.
                    (2) Any provisions of previous proclamations and 
                Executive orders that are inconsistent with the actions 
                taken in this proclamation are superseded to the extent 
                of such inconsistency.
                    (3)(a) The modifications to the HTS made by this 
                proclamation shall be effective with respect to goods 
                entered, or withdrawn from warehouse for consumption, 
                on or after the fifteenth day after the signing of this 
                proclamation.
                    (b) At the close of the effective period specified 
                therefor in the Annex, HTS subheadings 9906.98.02 and 
                9906.98.03 shall cease to apply to imported articles, 
                except that goods described in such subheadings that 
                were shipped and in transit on a through bill of lading 
                on such specified date shall be eligible for the tariff 
                treatment specified therein as if entered on the last 
                day of such effective period. At the close of the day 
                that is one year from the close of the effective period 
                specified in such HTS subheadings, U.S. note 28 to 
                subchapter VI of chapter 99, such subheadings and their 
                immediately superior text beginning with the word 
                ``Apparel'' shall all be deleted from the HTS.
                    (c) The United States Trade Representative is 
                authorized, after obtaining advice from the appropriate 
                advisory committees established under section 135 of 
                the Trade Act (19 U.S.C. 2155), to extend the effective 
                period of the new tariff provisions for one additional 
                year, upon publication in the Federal Register of a 
                notice modifying the new HTS subheadings accordingly.

                IN WITNESS WHEREOF, I have hereunto set my hand this 
                eighteenth day of September, in the year of our Lord 
                nineteen hundred and ninety-eight, and of the 
                Independence of the United States of America the two 
                hundred and twenty-third.

                    (Presidential Sig.)

                Billing code 3195-01-P

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                [GRAPHIC] [TIFF OMITTED] TD22SE98.045
                


[FR Doc. 98-25476
Filed 9-21-98; 8:45 am]
Billing code 3190-01-C